Class Economy Premium: Virgin Media and Sky are asking the EC to approve the sale of O2 to Hutchison

Saturday, February 6, 2016

Virgin Media and Sky are asking the EC to approve the sale of O2 to Hutchison – EntornoInteligente

Cinco Dias / Follow the turmoil in the British sector of the telcos. Virgin Media has asked the European Commission (EC) to allow the purchase of O2, Telefónica’s subsidiary in the United Kingdom, by Hutchison, for subsequent merger with Three. A transaction valued at 10,500 million pounds (13,600 million euros) will cause a reduction in the number of mobile network operators from four to three.

Virgin, which has a 19% share in the broadband market, He wants to take advantage of the merger of O2 and three to strengthen its position in the mobile phone which, through its OMV, has over three million users. According to Financial Times, the company believes that concerns about the impact of the merger on competition can be resolved, and recalls the case of Austria and Ireland, where there is strong competition and alternatives to the consumer, thanks to the concessions approved Brussels operations similar to the concentration of O2 and Three.

Hutchison, to have the approval of the EC, has offered the sale of wholesale capacity and opening their networks to virtual operators. The Asian group has also offered a freeze on rates for five years, with an investment of 5,000 million pounds (6,500 million euros).

Virgin Media is not alone. Sky also has supported the EC approved the merger of O2 and Three. The company, which has a 22% share in the broadband market, will enter the mobile phone business. In fact, it agreed last year to use the O2 network.

The broadband companies want to position themselves in the mobile challenged to BT, which has just closed the purchase of EE, largest mobile operator in the UK, which puts the former monopoly in a strong position to undertake the launch of fixed-mobile convergent offers.

the process, in any case, is underway. The EC sent on Thursday a provisional list Hutchison with his objections to the operation. Now begin a long negotiation to try to reach an agreement. A situation that has occurred in other countries like Germany, where Telefonica negotiated long Brussels for approval to the purchase of E-Plus. In principle, the EU executive has until April 22 to make a final decision.

The process has been fraught with tension. This week, the maximum responsible for Ofcom, the UK regulator, Brussels asked him to stop the merger of O2 and Three by the risk of a price increase. So far, the operation goes ahead.

Telefónica a break in the stock market before the new Telefónica scenario is taken has been taken into respite Exchange under the new circumstances generated around the sale of the British subsidiary O2 Asian group Hutchison Whampoa.

So, the company’s shares were up 1.78% at its meeting on Friday to 9.42 euros. As early trading Thursday, shares of Telefonica rose 2.77%. However, Matildes accumulate a decrease of 7.89% since the beginning of the year, a period marked by a strong punishment in all global financial markets.

Investors seem to believe so for the realization of the sale of O2, once Hutchison Brussels has sent the list of objections to be resolved to approve the transaction. The sale of O2 is key in the dividend committed by Telefónica of 0.75 euros per share for this year.

Virgin Media and Sky are asking the EC to approve the sale of O2 to Hutchison

Information Five Dias

http://entornointeligente.com/articulo/7850871/Virgin-Media-y-Sky-piden-a-la-CE-que-apruebe-la-venta-de-O2-a-Hutchison